The Problem: Media, Friends & Quarterly Statements
It might seem like the sky is falling. The media makes it sound like it is. Many of your friends act like it is. Even you may feel like the sky is falling when your Quarterly Statement shows the sudden evaporation of years of your own hard-earned savings. It’s natural to become worried and discouraged.
When all the news is bad, it’s easy to fear the worst. You begin thinking that you’ll never be able to retire, or, if you do retire, that you’ll run out of money. So, what should you do?
Worry more? Sell Stocks? Buy Stocks? Yell At Your Advisor? Nothing?
When things are bad, everyone feels the need to… Do Something! But what?
The problem is, you don’t have the information you need to decide what to do. You can’t know, with confidence, when you can retire or how much money you can spend after you retire. That’s because quarterly (or even annual) investment statements show only short-term results. They don’t tell you how those results will affect your long-term financial success.
You can’t make good long-term decisions based
on short-term information.
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